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NIFTY
CLOSE-8,001.95 (28.08.2015)
Nifty witnessed steepest fall last week after breaking range on down side as anticipated. It has achieved short term targets levels as expected. It made a low of 7667.25 levels on nifty. It sharply bounced back from these levels & retraced around 50% in wave-IV pull back rally near recent high. It made a high of 8091.80 levels on nifty & 26,687.17 levels on sensex. One can expect market trend down for wave-V lower levels targets as mentioned below in short term.
All the indices such as Mid cap, small cap, & Bankex etc including main closed weekly in negative territory. BSE 500 & Bankex also looks like wave-IV Pull back rally in channel, Break of these channels with daily negative close will be final confirmation of End of Wave-IV Pull back rally.
Short term out look for the market remains negative till nifty trades below 8225 levels & expecting targets in the range of 7640-7590-7500 levels in short term. From overall wave count perspectives, it still looks like Wave-5 of C is still pending for lower levels targets till Short term reverses or we get any other advance indication of trend reversal. Market is facing Resistance near GAP area.
Momentum indicators daily KST & daily MACD both are in SELL. 8100 levels on Nifty & 26,730 levels on Sensex are crucial resistance levels for short term. Sustain above short term reversal levels will confirm further trend towards higher levels targets of 8530-8650 levels in short term. One should be stock specific & follow the trend with till it reverses.
Stock Picks:
LIC Housing Finance- SELL
CMP- Rs 438.30
Target- Rs 409/389
LIC HSG closed weekly in negative territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. It has completed Wave-IV up Pull back rally & started wave-V Down. One can SELL with SL-457.60 for the target of 409/389 levels in short term.
YES Bank-SELL
Close- Rs 676.15
Target- Rs 637/590
YES BANK closed weekly in negative territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. It has completed Wave-IV up Pull back rally & started wave-V Down. One can SELL with SL-702 for the target of 637/590 levels in short term.
KOTAK MAHINDRA BANK- SELL
Close- Rs 645.15
Target- Rs 616/573
KOTAK MAHINDRA BANK closed weekly in negative territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. It has completed Wave-IV up Pull back rally & started wave-V Down. One can SELL with SL-665 for the target of 616/573 levels in short term.
L&T- SELL
Close- Rs 1616.90
Target- Rs 1575/1545
L&T closed weekly in negative territory. Its Daily momentum indicators are in SELL. Risk reward is favourable to SELL at current levels. It has completed Wave-IV up Pull back rally & started wave-V Down. One can SELL with SL-1666 for the target of 1575/1545 levels in short term.
Devang Shah is a Portfolio Manager- PRO TECH-PMS at Sharekhan
Disclaimer: The analyst may have a position in the scrip mentioned above; the views given above are the personal views of the analyst.
